An R-multiple measures how much you made or lost relative to your initial risk. Enter your entry, stop, and exit price to calculate your R-multiple and see whether the trade met your minimum reward-to-risk threshold. Use it to log trades and track whether your edge is real.
What is an R-multiple?
R stands for risk. When you enter a trade, the distance between your entry and your stop is 1R — that is the most you planned to lose. If the stock moves in your favor by twice that distance, you made 2R. If it hits your stop, you lost 1R.
R-multiples let you compare trades regardless of position size or share price. A +3R trade on a $15 stock and a +3R trade on a $200 stock represent the same quality of outcome relative to the risk taken.
How to calculate it
For a long trade:
- Risk per share (R) = Entry price − Stop price
- Gain per share = Exit price − Entry price
- R-multiple = Gain per share ÷ R
For a short trade, reverse entry and exit:
- Risk per share (R) = Stop price − Entry price
- Gain per share = Entry price − Exit price
- R-multiple = Gain per share ÷ R
Why R-multiples matter
Dollar P/L hides the quality of a trade. Making $500 on a trade where you risked $100 (5R) is a great trade. Making $500 where you risked $2,000 (0.25R) is not. R-multiples separate skill from size.
Over a series of trades, your average R-multiple (called expectancy) tells you whether your system has a real edge. If your average R is positive after 30+ trades, the system works. If it is flat or negative, something needs to change — either the setups, the entries, or the exits.
Use the position size calculator to set your R before entering, and this calculator to measure it after exiting. Track both in a journal and review weekly.
Trade journal: log your R-multiples
Add closed trades below. Your running average R and win rate update automatically. Data stays in your browser.
| Ticker | Entry | Stop | Exit | R |
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Questions
What is an R-multiple?
An R-multiple measures how much you made or lost relative to your initial risk (R). If you risked $1 per share and made $3, your R-multiple is +3R. A stopped-out loss is -1R.
What is a good R-multiple?
Most swing traders target a minimum of 2R. Consistently achieving 2R or higher means you can be profitable even with a 40% win rate.
How do you calculate R-multiple?
R = (Exit Price − Entry Price) / (Entry Price − Stop Price) for a long trade. The denominator is your risk per share; the numerator is your gain or loss per share.
What is expectancy in trading?
Expectancy is your average R-multiple over many trades. Positive expectancy means your system has an edge. Calculate it after at least 30 trades for a statistically meaningful number.
Find trades worth taking
The scanner flags setups with defined entry and stop levels, so you know your R before you click buy.
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